benami transaction
ASMA SAVANUR
(Querist) 05 October 2014
This query is : Resolved
I am a Muslim. I have filed dissolution of marriage in the court. Its running since 2005. I own a residential house in my city. I am a working woman. I have availed housing loan to construct the said house and the same is cleared. Now at the fag end of my case my husband has filed a petition saying the said transaction of purchase of property is a benami transaction and prayed the court to declare me as benamidar.
I also would like to mention here that the said property is purchased in 1994. Kindly guide me in the matter.
Asma
Sailesh Kumar Shah
(Expert) 05 October 2014
who is pay the money for purchase of property ?
and
payment of money by which mode ?
ROHIT SHARMA
(Expert) 05 October 2014
1. The fact that you have availed of loan suggests that you are the owner of such property.
2. Anyway this stance of the respondent is irrelevant in so far as the proceedings initiated by you. The application filed by him seeking the court to declare you be benamidar will not survive.
ASMA SAVANUR
(Querist) 15 October 2014
I am given to understand by an eminent sitting justice that there is no concept of benami transaction in Muslims. Is it true. If so can you please give me the acts and citations.
Sailesh Kumar Shah
(Expert) 15 October 2014
This is for your kind information that there is statue relating to benami transaction i.e. The Benami Transactions (Prohibition) Act 1988.
and It extends to the whole of India except the State of Jammu and Kashmir.
Anirudh
(Expert) 15 October 2014
1. First and foremost, it is not a Benami property - as you have obtained housing loan and repaid the same through EMIs.
ASSUMING (for the sake of argument) that it is a benami transaction, then the Benami Transactions (Prohibition) Act 1988 will come to your complete defence and support.
2. As per Section 3 (1)of the Act, No person shall enter into any benami transaction.
3. As per Section 3(2) of the Act, the prohibition will not apply in case where a property is purchased by a person in the name of his wife or unmarried daughter.
4. If a person purchases a property in the name of his wife or unmarried daughter, then it shall be presumed, unless the contrary is proved, that the said property had been purchased by him for the benefit of the wife or the unmarried daughter.
5. Thus, having purchased the property in your name, the same becomes your property. Your husband cannot claim it, unless he proves that he has not purchased for your benefit. (This is next to impossible for him.)
6. The Act is applicable to all, irrespective of religion.
7. Your husband cannot claim the said relief in the Divorce proceedings. The said court has no jurisdiction to grant the prayer.
